Kazakhstan Featurees - The Times Of Central Asia

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Constitutional Reform

Kazakhstan’s Parliament Gives Way to New Kurultai Under Tokayev’s Constitutional Reset

Kazakhstan’s bicameral parliament held its final joint session in Astana on June 30, closing a 30-year legislative era before the new Constitution takes effect on July 1. The change will replace the Senate and Mazhilis with a single-chamber Kurultai. Elections to the new body are expected in August, with 145 deputies to be elected through party lists. No current deputy will transfer automatically into the new chamber, giving the coming vote direct importance for Kazakhstan’s parties and for President Kassym-Jomart Tokayev’s wider state overhaul. Addressing the final joint session, Tokayev framed the change as more than an administrative reform. He said Kazakhstan was entering “a new chapter in the development of independent Kazakhstan,” and beginning what he called a new historical era. The president also used his speech to summarize the work of the parliament created under the 1995 Constitution. Over three decades, the legislature adopted around 3,500 laws, which Tokayev said had helped strengthen the country’s statehood. “Today, we are completing an important parliamentary political cycle and opening a new chapter in the development of independent Kazakhstan,” Tokayev said. According to Tokayev, more than 300 major laws, including constitutional legislation, have been adopted over the past three years. He described them as “a reliable platform for our future achievements.” The transition also carries a succession dimension. The new Constitution creates a vice presidency and rewrites parts of the state architecture ahead of the scheduled end of Tokayev’s single seven-year presidential term in 2029. Tokayev has presented the changes as a modernization of governance, while the August Kurultai election will show how much room the new party-list system gives to political competition. Tokayev told deputies that the new legislature would need to move faster than the outgoing parliament. He said the Kurultai would be expected to remove bureaucratic obstacles, improve the speed and quality of law-making, and bring qualified experts and consultants into legislative work. “The Kurultai will have to eliminate all obstacles in the form of bureaucratic procedures, increase the speed and quality of law-making, and organize the effective work of qualified experts and consultants,” Tokayev said. He linked those goals to global instability and digital competition, saying Kazakhstan had to adapt legislation to a rapidly changing environment. “The Kurultai will have to work at an accelerated pace to promptly adapt national legislation to rapidly changing realities within the digital matrix,” Tokayev said. “This is a critically important task, as it will determine Kazakhstan’s readiness to participate in global competition.” Tokayev praised the outgoing deputies for their work on digital legislation. He said there had been no ready-made templates for regulating artificial intelligence, and credited the parliament with helping build a flexible legal system. Tokayev said Kazakhstan had become one of the first countries to adopt both a Digital Code and a specialized law on artificial intelligence. He also pointed to the new Constitution’s guarantees on the protection of personal data in cyberspace. The next phase, he said, would include a full e-Parliament system. Tokayev first raised that idea...

Pax Silica

Kazakhstan’s Pax Silica Accession Bodes Well for Foreign Investment

Kazakhstan’s accession to Pax Silica is more than a diplomatic ribbon-cutting. It is an investment signal. By joining an initiative supported by the United States and built around trusted supply chains for the new artificial intelligence economy, Kazakhstan has placed itself inside one of the most important emerging conversations in global industry about who will supply the minerals, energy, computing infrastructure, data centers, talent and manufacturing capacity behind the AI boom. Kazakhstan’s official readout was explicit about that ambition. Pax Silica, it said, brings partner countries together around artificial intelligence, critical minerals, semiconductors, data centers, energy infrastructure, high-tech manufacturing, research and talent development. Kazakhstan became the first country from its region to join, with Deputy Prime Minister and Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev signing the accession declaration and the AI Opportunity Partnership statement in Washington on June 25. “Behind every AI solution are energy, critical minerals, computing capacity, data centers, semiconductors, engineering talent, and secure supply chains,” Madiyev said. Pax Silica is a supply-chain coalition whereby each participant brings a piece of the AI industrial base such as chips, energy, minerals, capital, cloud infrastructure, advanced manufacturing, regulatory alignment or technical talent. Reuters has described the initiative as a U.S.-led effort to secure the supply chains behind artificial intelligence, from energy and critical minerals to high-end manufacturing and AI models. Kazakhstan’s inclusion demonstrates that the country is being viewed as a potentially significant node in the physical infrastructure of the AI economy. Why Kazakhstan Fits the Pax Silica Map Kazakhstan has existing relevance in the AI supply chain as well as the capability to expand that role. That helps explain why Kazakhstan, rather than another regional state, became the first Central Asian node to plug into Pax Silica’s trusted supply-chain architecture. The U.S. International Trade Administration says Kazakhstan has substantial reserves of rare earth elements, copper, lithium, tungsten, tantalum and other materials essential for modern technologies and the energy transition. It also notes that the country’s policy focus is shifting from raw-material exports toward value-added processing and downstream production. With regard to the energy feedstock needed to power AI data centers, Kazakhstan has been the world’s leading uranium producer since 2009 and produced about 40% of global output in 2025. Nuclear energy is returning to the strategic conversation as governments and companies look for firm, low-carbon electricity. Kazakhstan also has a proven record as a resource partner for the U.S. and the West. U.S. energy majors helped build Kazakhstan’s modern oil sector, with Chevron beginning production from a $48 billion expansion of the Tengiz oilfield in 2025. In aerospace, Kazakhstan’s Ust-Kamenogorsk Titanium and Magnesium Plant supplies major global manufacturers, including Boeing and Airbus, and officials say titanium from Kazakhstan accounts for roughly one-fifth of the global aerospace titanium market. A New Layer in U.S.-Kazakhstan Alignment Pax Silica also follows a warming trend in U.S.-Kazakhstan relations under the Trump administration. Tokayev has already framed Kazakhstan as an active participant in several U.S.-backed initiatives, including the Abraham Accords, the...

Fuel Shortages

Russia’s Fuel Crisis Tests Kazakhstan’s Energy Resilience

Kazakhstan is being pulled into a new energy paradox. As Russia's fuel crisis deepens, the country is being discussed as a potential gasoline supplier to its largest neighbor. Meanwhile, Kazakhstan is tightening controls at home, building reserves around refinery maintenance, and weighing fuel imports from China to protect its own market. On June 24, Reuters reported that Russia was in talks with Kazakhstan to import about 50,000 metric tons of AI-92 gasoline, citing four industry sources. The discussions followed refinery outages and unscheduled repairs in Russia after Ukrainian drone attacks, which had led to shutdowns at several large refineries in central Russia and cut Russian gasoline output by roughly 25% year-on-year by late June. The news was striking because Russia is normally a major exporter of petroleum products. The need to consider gasoline imports, including seaborne imports and emergency market-stabilization measures, underlines the scale of disruption in Russia's refining system. Kazakhstan's Energy Minister Erlan Akkenzhenov said Astana had not received an official request from Moscow, but the question remains politically and economically sensitive for Kazakhstan: can it afford to send fuel abroad if its own margin of safety is narrowing? Officially, the domestic picture remains stable. Kazakhstan's government said on June 20 that national stocks of gasoline, diesel, and aviation fuel exceeded 1 million tons, enough to cover current demand. It said supplies were being prioritized for filling stations, agricultural producers, and domestic airlines, and that no shortage of fuels and lubricants had been observed. Yet those assurances sit alongside a more fragile structural reality. Kazakhstan's refining system depends heavily on three large refineries: Atyrau in the west, Pavlodar in the north, and Shymkent in the south. Last year, it was reported that, after modernization, the three plants had a combined annual output of about 17 million metric tons. Such a system can function efficiently when all units are operating normally, but it leaves limited room for simultaneous shocks. One of those shocks is already present. The Atyrau Oil Refinery began scheduled preventive maintenance on June 26 under a timetable approved by the Ministry of Energy. KazMunayGas said the work includes inspections of 20 reactors, 213 storage tanks, 32 columns, and 231 heat exchangers, as well as replacement of more than 335 tons of catalysts. The refinery entered maintenance with 38,000 tons of gasoline, 31,300 tons of diesel, and 6,800 tons of jet fuel. KazMunayGas said national stocks of AI-92 gasoline and diesel covered 34 and 32 days of demand, respectively, and that the phased restart of processing units was scheduled to begin on July 10. Those figures show resilience, but not abundance. Summer brings higher consumption from agriculture, passenger travel, freight, and aviation. For the government, managing this period means monitoring refinery output, shipments, inventories, and preventing fuel from leaving the country through unauthorized channels. After a June 20 meeting, Prime Minister Olzhas Bektenov ordered tighter border controls; the government said vehicles are restricted from crossing the state border by road more than once per day as part of...

Kazakhstan's Parliament

Kurultai Election Campaign Takes Shape in Parliament’s Final Budget Debate

Kazakhstan's outgoing parliament spent one of its final sessions debating the government's management of the 2025 budget, in what often resembled a dress rehearsal for the country's first Kurultai election campaign. On July 1, Kazakhstan’s new constitution will enter into force, replacing the current Senate and Mazhilis with a single-chamber Kurultai. The new legislature will have 145 deputies elected through party lists, and elections are expected in August. No current deputy will transfer automatically into the new chamber. Those who want to remain in national politics will need a place on a party list and a fresh mandate. That gave the June 26 session an unusual political significance: would any outgoing deputies use the budget debate to make a final public break with the government? Some did put pointed questions to Prime Minister Olzhas Bektenov and Finance Minister Madi Takiyev as parliament reviewed and approved the reports of the government and the Supreme Audit Chamber on the execution of the republican budget for 2025. Finance Minister Madi Takiyev presented the figures in optimistic terms. According to him, Kazakhstan’s economy grew by 6.5% in 2025, while GDP increased by $14.7 billion in dollar terms. Meanwhile, public debt remains low at around 22.8% of GDP, or approximately $74.5 billion. Deputies asked Prime Minister Olzhas Bektenov why, despite GDP growth of 6.5%, Kazakh citizens’ incomes had declined. Bektenov referred to high inflation, which has been eating into household incomes. “Last year, inflation peaked in September at 12.9%. Now, as a result of measures taken by the government, the National Bank and other interested agencies, inflation over the first five months of this year has declined to 10.4%,” the prime minister said. He recalled that the government had adopted a separate plan to raise household incomes. According to the government, the average monthly wage reached 442,000 tenge, about $910. He said there were already sectors, such as agriculture and transport, where real incomes had increased. Mazhilis deputy Azat Peruashev, who recently stepped down after 15 years as chairman of the Ak Zhol party but still heads its parliamentary faction, focused on the National Fund. He said the government had failed to keep an earlier promise to reduce withdrawals. “When approving the draft budget for 2024-2026, the government announced a plan to reduce withdrawals from the National Fund starting in 2025. In fact, the volume of funds received from the National Fund in 2025 remained high, at approximately $10.8 billion,” he said. The National Fund is one of the most politically sensitive parts of Kazakhstan’s public finances. Built largely from oil and gas revenue and managed through the National Bank, it is meant to serve two functions: to help stabilize the budget when commodity revenue falls, and to preserve part of the country’s resource wealth for future generations. Heavy withdrawals therefore carry a political cost. They can help cover current spending, but they also reduce the savings Kazakhstan has accumulated from its oil wealth, making the size of annual transfers a perennial political argument. Peruashev...

Titanium

UKTMP Eyes Expanded U.S. Presence as Kazakhstan’s Titanium Champion Seeks New Markets

ASTANA — On June 11, Sylvain Gehler, Chairman of the Board of the Ust-Kamenogorsk Titanium and Magnesium Plant (UKTMP), and Assem Mamutova, the company’s CEO, spoke with The Times of Central Asia during the Astana Mining and Metallurgy Congress (AMM). He outlined their plans to strengthen the company’s international footprint, with the United States emerging as a priority market. During the meeting, Gehler highlighted UKTMP’s ambition to further solidify its position as a leading aerospace-grade titanium supplier, building on six decades of operations and what Kazakh officials describe as roughly one-fifth of the global aerospace titanium market. “The combination of Kazakhstan’s resource base, UKTMP’s decades of experience, and the increasing importance of secure supply chains creates a strong platform for future growth. We are committed to remaining a trusted partner for aerospace customers around the world,” Gehler said. UKTMP, based in eastern Kazakhstan, is among the world’s largest vertically integrated titanium producers, controlling the entire production chain from raw materials to finished products. The company’s products are used in aviation, medicine, shipbuilding, petrochemicals, and nuclear industries. Among its international partners are Boeing, Airbus, Safran, General Electric, and other leading manufacturers. [caption id="attachment_50948" align="aligncenter" width="708"] UKTMP -Titanium sponge at the end of the distillation process[/caption] Gehler emphasized that “delivering consistent, high-quality titanium products reflects our commitment to rigorous standards and positions us to meet rising demand for resilient, transparent supply chains while expanding in key markets.” The company’s long-term development plans and initiatives aim at reinforcing Kazakhstan’s standing in the global titanium industry. According to Gehler, “UKTMP’s investment program through 2033 includes 25 projects worth more than $520 million, including construction of a new titanium sponge facility that would significantly expand production capacity.” Currently, UKTMP has 30 types of titanium alloys. Titanium and its alloys combine a high melting point, high electrical resistivity, exceptional strength-to-weight ratio, corrosion resistance in air and seawater, and non-magnetic behavior. It is also lightweight—its specific gravity is approximately 56% that of steel—biologically inert, and readily formed under pressure, making titanium a versatile structural material widely used in advanced industries. United States Demand for Titanium The American aerospace and defense sectors rely heavily on titanium, while disruptions to traditional supply chains following sanctions on Russia have heightened interest in alternative suppliers. Kazakhstan has emerged as one of the countries helping fill that gap. [caption id="attachment_50961" align="aligncenter" width="1447"] Source: USGS[/caption] Industry analysts note that the United States currently lacks domestic titanium sponge production and remains dependent on imports. In 2025 through July, Japan supplied 73% of U.S. titanium sponge imports, while Kazakhstan and Saudi Arabia each supplied 13%. This strategic reliance underpins the favorable treatment the U.S. currently gives to Kazakh titanium, since heavy supply restrictions would adversely impact the U.S. aerospace and defense industries. This has not always been the case. For UKTMP, deeper access to the U.S. market represents not only a commercial opportunity but the makings of a strategic partnership. Increasing sales to American customers would further anchor Kazakhstan within Western aerospace and other supply...

Middle East Crisis

The Fragile U.S.–Iran Truce: What Central Asia Stands to Gain and Lose

The preliminary memorandum signed in mid-June between the United States and Iran, followed by renewed talks between Washington and Tehran, has extended a U.S.–Iran truce and opened a 60-day window for negotiations on a final agreement. The nuclear terms remain unresolved, while Israel’s continued military presence in southern Lebanon, despite U.S. pressure for a withdrawal, underscores how fragile the broader regional de-escalation remains. At the end of this period, the parties may sign a final agreement, return to hostilities, or mutually agree to extend the interim arrangement. Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan, along with neighboring Azerbaijan, have welcomed efforts to de-escalate the conflict between the United States and Iran. The fighting briefly boosted demand for alternative routes through Central Asia, but prolonged instability would disrupt trade, raise transport and insurance costs, and increase security risks. The question now is what the region could gain if the pause holds. Those effects would vary across the region. Turkmenistan and Uzbekistan stand to benefit most directly from safer southern rail access through Iran to the Persian Gulf and Türkiye. Kyrgyzstan and Tajikistan, which are less directly connected to these corridors and less exposed to oil price swings, would feel the consequences mainly through freight costs, fuel prices, and wider regional trade. For Azerbaijan, a sustained pause would reinforce its role as the Caspian link between Central Asia, the South Caucasus, and Türkiye, while renewed instability would push more freight toward Trans-Caspian alternatives. That interest is not merely theoretical. Tajik-Iranian trade reached $119.6 million in the first quarter of 2026, while Tajikistan and Kyrgyzstan are developing access to Iranian maritime infrastructure through Uzbekistan and Turkmenistan. The opportunity, however, is conditional. A truce can reduce military risk, but it does not by itself remove the banking, insurance, and compliance problems that have long complicated trade through Iran. For Central Asian exporters and logistics companies, the question is not only whether routes are physically open, but whether carriers, lenders, insurers, and buyers are prepared to use them during a temporary 60-day window. Analysts interviewed by Deutsche Welle said the framework leaves several important provisions unresolved, making a final agreement uncertain. For Central Asia, the most immediate economic variable is the Strait of Hormuz. Kazakh historian and political analyst Sultan Akimbekov identifies its reopening as the key to easing global supply fears. A durable reopening, combined with the temporary U.S. waiver allowing Iranian oil sales through August 21, could put downward pressure on global energy prices. The effects would vary across Central Asia: weaker prices could strain hydrocarbon revenues, while lower fuel, fertilizer, and freight costs could ease imported inflation in Uzbekistan, Kyrgyzstan, and Tajikistan. For Kazakhstan, lower global oil prices would have significant implications. National Bank Governor Timur Suleimenov has said oil generates more than 50% of the country’s export revenues and over 30% of the state budget and National Fund revenues. That would reverse one of the conflict’s few short-term economic benefits for Kazakhstan. Higher crude prices had briefly improved the outlook for export revenues,...